SOURCE: UC Resources Ltd.

August 10, 2005 16:29 ET

UC Resources Ltd. Update on Copalquin Project, Durango, Mexico

TORREON, COAHUILA, MEXICO -- (MARKET WIRE) -- August 10, 2005 -- UC Resources Ltd. (TSX-V: UC)

Management is pleased to provide the following update on exploration work at the Company's Copalquin Project located in the state of Durango, in northwestern Mexico. The Copalquin Project comprises a series of concessions totaling 7,005 hectares centered on a historic gold and silver mining area that has seen very limited modern exploration work.

As previously announced, the drill program completed by UC in late 2004 and early 2005 confirmed the presence of high grade mineralization reported by a previous operator (Bell Coast Capital "BCC," 1997) from the El Cometa Prospect located in the central part of the property. Drilling also identified the strike extension of a mineralized zone referred to as the El Refugio Prospect 500 meters to the west of El Cometa. Results of the 2004 program are available on our website: www.ucresources.net.

After completion of the drill program management compiled all available exploration data for the project to delineate target areas for follow-up drilling and to provide a basis for comparing Copalquin with other successful projects in the Sierra Madre such as Gammon Lake Resources Ocampo Project and Kimber Resource Monterde Project.

To date, a total of 31 drill holes have tested mineralization in the area of the El Cometa Prospect and 5 drill holes have tested mineralization in the area of the El Refugio Prospect. During the recent review, it was noted that many of the mineralized intervals reported by both UC and BCC from the El Cometa area actually represent only the highest grade sections within much wider zones of lower grade mineralization. For example, drill hole UC-14 reportedly intersected 11.6 meters of mineralization averaging 3.01 g/t gold and 300.6 g/t silver. An inspection of assay information shows that the overall mineralized zone in drill hole UC-14 actually averaged 0.76 g/t gold and 73.1 g/t silver over 51.2 meters. It is important to note that with the same conversion factor used by Gammon Lake (65:1) this 51.2 meter intersection averages 1.9 g/t gold equivalent.

Other examples of drill holes from the El Cometa area which intersected wide zones of mineralization include DDH UC-01 which intersected a 31.4 meter wide interval that averaged 0.41 g/t gold and 40.8 g/t silver. BCC drill hole EC-10 reportedly intersected 6.9 meters of mineralization averaging 17.03 g/t gold and 352 g/t silver. Core logs and drill hole assay information prepared by BCC show that the reported intersection actually forms part of a 23.5 meter wide interval that averaged 8.42 g/t gold and 192.5 g/t silver. Drill hole EC-25 reportedly intersected a 49 meter wide interval that averaged 0.43 g/t gold and 14.4 g/t silver.

According to technical reports prepared by BCC the precious metal mineralization at Copalquin is localized within silicified breccias and stockworks hosted by Tertiary volcanics. The wide zone of mineralization identified at El Cometa is also reported to be present at the El Refugio Prospect located 500 meters to the west of the El Cometa. It is reported that only one drill hole ER-31, was successfully completed by BCC at El Refugio and this hole intersected a 78 meter wide zone that averaged 0.22 g/t gold and 5.8 g/t silver. Four drill holes, completed by UC from a station approximately 50 meters southeast of BCC hole ER-31, confirmed the strike extension of the mineralized zone to the east of El Refugio. The last hole of the program, DDH UC-24 intersected a 17.9 meter wide zone that averaged 2.94 g/t gold and 64.7 g/t silver.

Based on a review of technical reports filed on SEDAR by Gammon Lake Resources for the Ocampo Project it was concluded that there are marked similarities in the style and tenor of mineralization between the Copalquin and the Ocampo projects. Both projects host wide, structurally controlled silicified breccia zones and stockwork zones that exhibit argillic alteration and contain small quantities of native gold and argentite and both projects host narrower zones of higher grade mineralization. These types of deposits are referred to as low sulphidation, epithermal deposits.

Technical information published by Gammon Lake indicates that typical mineralized drill holes within the proposed open pit area at Ocampo, comprise near surface, 10 to 50 meter wide zones of mineralization that generally range from 0.50 to 2.00 g/t gold equivalent. Cut-off grades in the proposed open pit area are surprisingly low at 0.3 g/t gold equivalent. In a press release dated September 7, 2004 Gammon Lake announced that the combined resources at Ocampo including both open pit and underground operations were 7.5 million gold equivalent ounces.

Given the fact that the drill holes reported from the El Cometa and El Refugio Prospects have the same tenor of gold and silver mineralization and exhibit the same mineralogy and alteration features identified at the Ocampo Project, management is of the opinion that the Copalquin project represents a promising, early stage, "low sulphidation," epithermal prospect.

Based on the potential for a significant discovery at Copalquin, management acquired an option to purchase a 100% interest in the project (see NR dated June 23, 2005) and is currently completing financing for working capital and funds to pay for the costs of drill testing the area between El Cometa and El Refugio. Drilling is slated to commence as early as October 2005.

The El Cometa and El Refugio Prospects are centrally located within the Copalquin property and are considered a high priority exploration target for several reasons. The target zone between the two prospects is very close to surface, open along strike and has not been tested by drilling. The target zone appears to be open to the northwest of the El Refugio Prospect and, based on available geological maps, the projected extension of the target zone to the north will intersect the down dip projection of one of the largest historic mines at Copalquin (La Soledad).

The technical information contained in this release was prepared by Carl von Einsiedel, P.Geo., a "qualified person" within the meaning of National Instrument 43-101 for the Copalquin Project. Mr. von Einsiedel is currently the Vice President Exploration for UC Resources Ltd. Please note that the information contained in this release is based on information contained in various press releases issued by BCC and UC Resources Ltd.

Statements in the release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. We undertake no duty to update any forward-looking statement to conform the statements to actual results or changes in our expectations. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

On behalf of the board of directors,

Richard Hamelin,               or Will Elston: 800-366-8566 or 604-681-7265
President, Director
Tel: 416-907-0788
UC Resource Ltd.
#507, 595 Howe Street
Vancouver, B.C. V6C2T5 Canada
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings what are available at www.sedar.com.

Contact Information

  • Contact:
    Richard Hamelin
    President, Director
    Tel: 416-907-0788
    UC Resource Ltd.
    #507, 595 Howe Street
    Vancouver, B.C. V6C2T5 Canada

    Will Elston:
    800-366-8566 or 604-681-7265